Analysis of the budget implementation reports (BIR) of northeast states shows that Yobe State had a 100 per cent implementation of its pro rata 2022 budget. Available BIR for the first quarter shows the state spent N38.44 billion, the amount for the quarter.
Gombe State had an 80.24 per cent performance by the end of the third quarter as the state spent N93.26 billion of its N116.22 pro rata budget. Bauchi and Taraba states had 77.44 per cent and 59.46 per cent implementation performance, respectively. In Bauchi State, 114.69 billion was spent from a first three-quarter budget of N148.11 billion, while N66.8 billion of the N112.34 billion for the same period was spent in Taraba State.
Borno State recorded the least in the region. The state spent N76.3 billion of the N202.27 billion budget for the first three quarters of 2022.
Implementing 44.43 per cent of its budget for the first quarter of 2022 is Adamawa State. The state spent N18.18 billion from a pro rata budget of N40.91 billion for the first quarter.
North-East’s Regional Budget Appropriation
Of the six states in the northeast region, four had their BIR for the first three quarters, while two had theirs for the first quarter only. Bauchi, Gombe, Borno, and Taraba, by the end of the third quarter, collectively spent N351.05 billion out of a budget of N578.94 billion. This shows a 60.64 per cent performance.
Adamawa and Yobe states had a 71.35 per cent implementation performance for the first quarter of 2022. The states spent N56.62 billion of N79.35 billion first quarter budget.
Funding their budget for the year, the states in the region had a revenue projection of N563.63 billion and a budget deficit of N536.88 billion.
Bauchi, Borno, Gombe, and Taraba states generated N244.26 billion of N280.6 billion projected revenue for the first three quarters. This gave them an 87.05 per cent performance by the end of Q3.
By the end of the first quarter of 2022, Adamawa and Yobe states generated N33.43 billion of its N47.12 billion projected pro rata revenue, a 70.94 per cent performance.
Federation Account Revenue vs. Internal Generated Revenue (IGR)
N283.6 billion was the revenue estimated by Bauchi, Borno, Gombe, and Taraba states. N231.83 of this amount is expected to be received from the federation account revenue, while just 51.78 billion is to be generated internally. Thus, federation account revenue accounted for 81.74 per cent of the projected revenue.
In Adamawa and Yobe states, federation account revenue is expected to take 88.31 per cent of its N42.47 billion. The state’s budget is N37.51 billion to be received from the federation account revenue and N4.96 to be generated internally.
State revenue composition varies across the region. In Adamawa State, 89.04 per cent of its revenue came from the federation account, while 10.96 per cent was from internal sources.
Bauchi State had 77.35 per cent from the federation account and 22.65 per cent from IGR.
The federation account to IGR ratio to the other states in the region showed it was 84.90 per cent to 18.7 per cent in Borno State, 82.12 per cent to 17.88 per cent in Gombe State, 87.11 per cent to 12.89 per cent in Taraba State and Yobe State, 67.67 per cent to 9.99 per cent proportion.
The performance of the revenue component varies across the states. Adamawa State had a 64.86 per cent revenue performance from the federation account and 17.91 per cent from IGR.
Bauchi State received 89.51 per cent of its federation account revenue and generated 54.17 per cent of its internal revenue.
The performance in the other states shows 81.6 per cent of the federation account revenue and 53.64 per cent from IGR in Borno State. Gombe State recorded 107.25 per cent performance of federally collected revenue and 50.87 per cent from internal sources.
Taraba State received 82.86 per cent of its federation account revenue approved for the first three quarters of 2022 and generated 63.12 per cent of its internal revenue. Yobe State received all of its federal revenue as approved in the budget but generated only 9.82 per cent of its internal revenue.
The revenue generated composition varies across the states, but the region has a similar composition as IGR comprises less than 20 per cent of its generated revenue.
Federally collected revenue took the greater part of the revenue generated in all the states in the northwest region.
Recurrent vs. Capital
The states had different proportions of their budget for recurrent and capital expenditures.
In Adamawa State, it was 40 per cent to capital expenditure and 60 per cent to recurrent expenditure. Bauchi State budgeted 49 per cent to capital and 51 per cent to recurrent expenditure.
Borno and Gombe states had greater proportions of capital expenditure. In Borno State, 63 per cent, and 55 per cent in Gombe State.
Taraba State budgeted 48 per cent of its N112.34 billion expenditure to capital items, and Yobe State had 26 per cent of N36.44 billion to capital expenditure.
Across the states, capital expenditure performance ranged from 21 per cent in Taraba State to 52 per cent in Gombe State.
Only Gombe State in the region spent over 50 per cent of its expenditure on capital items.
A comparison of the various states’ capital expenditures by the end of the third quarter revealed that only Yobe State spent as much capital as it budgeted.
Yobe State budgeted 26 per cent of its capital expenditure and 26 per cent of the same on capital expenditure.
Adamawa State budgeted 40 per cent of its expenditure to capital projects but only spent 22 per cent of the budget on capital expenditure.
In Bauchi State, 49 per cent of its expenditure was budgeted for capital expenditure, and 39 per cent was spent. Bruno State budgeted 63 per cent and spent 48 per cent, and Taraba State budgeted 48 per cent.